What does a recoverable depreciation letter from a prior insurance claim mean?
Short answer. It is usually one of two things: a reminder from your insurer that you still have held-back depreciation you can collect if you finish the repairs before a deadline, or a request, often from a new insurer, to prove that damage from an earlier claim was actually repaired. Either way, respond in writing with the documents it asks for before the stated date.
If it is a reminder to collect
- Check the date of loss and the deadline in the letter.
- If the work is done, send the final invoice and photos now.
- If it is not done, decide whether you will repair before the deadline, and ask in writing for an extension if you need one.
- If you will not repair, the holdback will close out and you keep only the actual cash value already paid.
If it asks for proof of prior repairs
Insurers check claim histories. If an earlier claim paid for roof damage and no completion was ever submitted, a new or renewing insurer may ask for proof the roof was replaced, or may exclude that prior damage. Send:
- The final invoice from the earlier job
- Completion photos
- The permit or inspection record, if one was issued
If the damage was never repaired
Unrepaired prior damage can be excluded from a future claim, and an older damaged roof can lead to a non-renewal. Talk with your agent about getting it repaired.
Buying or selling a home
Buyers sometimes discover an old claim with unclaimed depreciation on the house. Ask the seller for completion documents before closing.
Related: recoverable depreciation on a roof, Georgia roof claim deadlines, and the date of loss.